Entertainment expenditure definition now includes allowances to employees and expenses incurred by employees for business purposes.

The amendment adds an Explanation to section 37 defining entertainment expenditure to include: (i) entertainment allowances paid by the assessee to employees or other persons after the operative date; and (ii) entertainment expenses incurred by employees or other persons for the assessee's business or profession (excluding those met from such allowances) after the operative date, thereby bringing both employer-paid allowances and employee-incurred business entertainment costs within the statutory concept of entertainment expenditure.

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